ITAT Bangalore: GST Refund Not Taxable Under Exclusive Method; Double Addition U/s 143(1) Struck Down

Dell International Services India Pvt. Ltd. Vs DCIT (ITAT Bangalore) n the case of Dell International Services India Pvt. Ltd., the Bangalore ITAT held that GST, sales tax, and service tax refunds cannot be taxed where the assessee consistently follows the exclusive method of accounting and does not route such taxes through the Profit & Loss Account. The Tribunal clarified that since these taxes were neither claimed as expenditure nor debited to P&L, their refund cannot be treated as income—rejecting the CIT(A)’s view of taxability under Section 41(1) or Section 28(i). Further, the...